RIYADH: Arab stock markets experienced a boost in trading values in October, with a monthly increase of 16.35 percent, according to the latest report by the Arab Monetary Fund.

The AMF’s monthly bulletin showed that the total trading values soared to $97.1 billion, up from $83.5 billion in September.

This surge came despite a slight overall dip of 0.57 percent in market capitalization, which ended the month at $4.27 trillion.

The gains were not universal, however, as 10 stock exchanges recorded increases in trading value, while four saw declines. 

Market winners: exceptional growth in trading value

Oman’s Muscat Securities Market emerged as the top performer, registering a 185.03 percent increase in trading value. The market’s total value jumped to $515.7 million in October, compared to just $180.9 million in September. 

Tunisia followed closely with a 161.66 percent rise, driven by robust investor activity, while Abu Dhabi’s financial market saw trading values almost double, with a 97.56 percent increase to reach $18.52 billion.

Other notable performers included Iraq, where trading values climbed by 52.57 percent, and Qatar, Oman, and Casablanca each recording double-digit percentage increases. 

Smaller but meaningful gains were observed in Kuwait at 13.89 percent and Saudi Arabia at 4.69 percent.

Despite the widespread rises, Bahrain, Damascus, and Beirut faced steep declines in trading value. Bahrain was the worst hit, experiencing a 65.57 percent drop, followed by Damascus with a 50.13 percent decline and Beirut with a 43.86 percent dip.

Index movements: Iraq takes the lead

The performance of individual market indices highlighted the uneven landscape across the region.

Iraq Stock Exchange: The standout performer with a 12.39 percent rise in its index, reflecting strong market sentiment and heightened investor interest. 

Damascus Securities Exchange: Achieved a 6.99 percent increase in its index, maintaining its growth streak.

Dubai Financial Market: Recorded a 1.94 percent uptick, signaling stability in the UAE’s financial sector.

Muscat Securities Market: Saw a modest index increase of 0.83 percent, correlating with its strong performance in trading value.

Indices in several major markets experienced declines:

Saudi Stock Market: The index fell by 1.67 percent, reflecting cautious investor sentiment.

Egypt’s EGX30: Dropped by 2.94 percent, despite improved trading values.

Casablanca: Declined by 1.42 percent.

Palestine: Down 1.27 percent.

Market capitalization: Mixed signals amid trading gains

Despite the surge in trading activity, the overall market capitalization across Arab stock markets contracted slightly by 0.57 percent, settling at $4.27 trillion. 

The Saudi market led the decline, shedding $23.86 billion in capitalization, while Abu Dhabi’s market lost $12.27 billion. Tunisia and Palestine also reported decreases.

Oman stood out among the gainers, achieving an 11.85 percent increase in market capitalization, followed by Damascus at 6.42 percent and Iraq at 6.08 percent, underlining their robust performances during the month.

External influences shape regional performance

The markets’ performance mirrored global trends, with major international indices reflecting mixed results. 

The MSCI Emerging Markets Index declined by 1.54 percent, while the S&P 500 and FTSE also posted slight losses of 0.99 percent and 1.54 percent, respectively. 

These fluctuations were compounded by ongoing regional challenges, including interest rate adjustments. Several Arab central banks lowered interest rates in September, boosting liquidity and supporting trading activity.

Geopolitical tensions also had an impact, with uncertainty in the Middle East, including potential disruptions in oil trade through the Red Sea, impacting investor sentiment.

Energy market dynamics saw volatile oil prices, influenced by production adjustments from OPEC+ and global demand concerns, add another layer of complexity.

A resilient outlook for Arab markets

October’s results underscored the resilience and adaptability of Arab stock markets amid global and regional challenges. 

While trading values surged, the market still faces external pressures, such as global economic uncertainty, oil market fluctuations, and geopolitical risks. 

Nonetheless, the substantial recovery in trading activity highlighted the potential for sustained growth and development in the region’s financial sector.

As the year progresses, market watchers will closely monitor how Arab exchanges navigate these challenges, balancing internal reforms with external influences to maintain momentum. 

This performance sets the stage for a promising end to 2024, with opportunities for further investment and regional financial integration.

RIYADH: Almoosa Health Co.’s upcoming initial public offering is poised to drive significant growth and innovation in Saudi Arabia’s healthcare sector, said the company’s CEO. 

In an interview with Arab News, Malek Almoosa emphasized that the IPO will attract capital for expansion and advanced technologies, enabling the company to strengthen its market position and broaden its services. 

The CEO said Almoosa Health is well-positioned to capitalize on Saudi Arabia’s rapidly evolving health care sector, which is expected to grow at a 6.5 percent compound annual growth rate to reach SR360 billion ($95.83 billion) by 2030. 

“The Kingdom’s health care infrastructure and utilization are still maturing and continue to lag global benchmarks, offering plenty of headroom for growth and investment in the sector,” he said. 

The company plans to issue 13.3 million shares, including 9.3 million new offerings and 4 million existing shares. This will represent 30 percent of the company’s post-IPO capital. 

“Our IPO plays an important role in attracting capital for investment in expansion and cutting-edge technology that will grow our footprint and our offering,” said Almoosa. 

The public listing, a partly primary offering, is relatively rare in the Saudi market. It not only positions the company to reduce its leverage and enhance financial flexibility but also extend its regional reach. 

“With a public listing, we also enhance our market positioning, attracting more business partnerships and broadening our patient demographic, and facilitating geographic expansion in the Eastern Province, where we are the leading health care provider,” he said. 

Almoosa Health has already secured strong investor interest, with cornerstone commitments from Tawuniya and Al Fozan Holding Co., subscribing to 4.1 percent and 2.5 percent, respectively, of the company’s post-offering capital. 

Listing on Tadawul 

The company said its decision to list on Tadawul aligns with its foundation and strategic direction. “We are, through and through, a Saudi organization that has grown with the Kingdom, and we wouldn’t have considered listing on any other financial market,” Almoosa said. 

By becoming part of the region’s largest and most liquid stock exchange, the company aims to enhance its capital-raising capabilities, visibility, and credibility. 

“Our decision to list on the Saudi Exchange reflects our strategic direction to harness local market insights, access a broad investor base, and continue to align with the Kingdom’s Vision 2030 health care objectives,” said Almoosa. 

Expanding capacity 

The CEO stated that funds raised would primarily support Almoosa Health’s expansion strategy, adding: “We have a clear growth strategy, planning to add around 700 beds by 2028, resulting in four hospitals with 1,430 beds and five primary care centers.” 

He explained that proceeds from 21 percent of the 30 percent offering would go to the company to finance expansion plans, covering capital expenditures, working capital, general corporate purposes, and partial debt repayment, while the remaining 9 percent would go to the selling shareholder. 

The company plans to open two major hospitals: Almoosa Specialist Hospital in Al Hofuf by 2027, with 300 beds and 200 clinics, and another in Al Khobar by 2028, featuring up to 400 beds and several centers of excellence. 

“We have already acquired the land and commenced excavation work for both,” Almoosa revealed. 

In addition, five primary care centers are planned in Al Ahsa, Al Khobar, and Dammam between 2025 and 2027. 

The CEO noted that this expansion aligns with the company’s vision of becoming a “trusted provider of world-class health care” in Saudi Arabia’s Eastern Province. 

“Our ambitious expansion plan is designed to make that vision a reality, growing our footprint, widening our offering, and investing in the best technology in the market.” 

Eastern Province, where Almoosa operates, is emerging as a hub for energy and petrochemical industries, driving demand for health care services. 

With a capacity of 730 beds and services spanning primary, acute, and rehabilitative care, Almoosa serves nearly 1 million patients annually. The company’s integrated care model includes pharmacy, home health care, and telemedicine.

Almoosa acknowledged challenges in the sector, including talent shortages. “In a region where world-class practitioners are hard to come by, we educate, develop, and retain the most talented professionals,” he said, emphasizing the company’s focus on patient experience and competitive advantage. 

Technology adoption 

Almoosa pointed out that technology is at the core of the company’s strategy to enhance patient care and operational efficiency. 

Its specialist hospital in Al Ahsa integrates advanced health IT systems to enhance patient care and operational efficiency. He revealed that innovations such as Tesla 3 MRI for high-resolution imaging and automated systems in laboratories and pharmacies underscore its commitment to cutting-edge solutions. 

“We’ve been recognized for our advanced use of health IT, with HIMSS Stage 7 Accreditation reflecting exceptionally high levels of technology adoption,” said Almoosa. 

With its IPO, Almoosa Health aims to play a pivotal role in shaping the healthcare landscape of Eastern Province and beyond, meeting the growing demand for high-quality, integrated services.